Trane Technologies plc (TT)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,894,000 | 2,418,900 | 2,023,300 | 1,532,800 | 1,670,100 |
| Revenue | US$ in thousands | 17,423,000 | 15,750,300 | 13,892,000 | 12,196,000 | 16,343,600 |
| Operating profit margin | 16.61% | 15.36% | 14.56% | 12.57% | 10.22% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,894,000K ÷ $17,423,000K
= 16.61%
Trane Technologies plc has demonstrated a consistent improvement in its operating profit margin over the past five years. The operating profit margin increased from 12.16% in 2019 to 16.37% in 2023, reflecting a positive trend in the company's efficiency and profitability. This indicates that Trane Technologies has been able to effectively control its operating expenses relative to its revenue generation, resulting in a higher percentage of operating profit retained from each dollar of sales. The progressive growth in the operating profit margin highlights the company's ability to optimize its operations and generate sustainable profitability over the years.